April 16th, 2011A Guide to Sales Tax for the Small Business
Every small business, like any business, has to file sales tax. It’s a known fact that the IRS allows self-employed and small businesses to take deductions for business expenses that are related to your work. The lower your taxable income is, the lower you will owe the federal government in taxes.
What to do First
First, you can deduct what you pay your employees—those employed in your business such as salary, property, wages, bonuses, commissions and fringe benefits. And, you can also make a home office deduction if you use some of your home for business needs. In addition, you can also deduct your vehicle if you use it for business purposes. This deduction is based on mileage. Entertainment expenses such as meals and travel are also deductible but only if the expenses are related to business concerns. Travel that is done for business concerns can also be deducted, especially if the travel lasts for more than a day.
Always Collect Your Receipts
It’s important to note also that included in a sales tax guide for a small business it is wise to always get receipts for every purchase that purchase that is business related. These receipts increase as the year goes by and will help increase your deductible toward tax purposes. Keeping you receipts in a computer system will also help to keep them organized and easy to find. And, if you become confused, seek advice from a tax professional. Hiring a professional can give you a more comfortable feeling—knowing that your tax information is being done in a secure manner. But before hiring such a person, do some research. Your information is personal and private; you want someone you trust.
Another point of interest for a small business is the IRS small business web site. It provides a great deal of information to small and larger businesses. It has many small business resources with links to various government resources for small businesses.
Use xerox 108r00671 when printing off any paperwork or forms for this tax season.